Third Party Debt Collector Faces Woman’s Fair Debt Collection Lawsuit

A woman filed a fair debt collection lawsuit against Client Services, Inc. alleging violations of the Fair Debt Collection Practices Act (FDCPA).

Plaintiff Marlena O. filed the fair debt collection lawsuit in New York federal court on March 16, 2018.

According to the fair debt collection lawsuit, Marlena is a resident and citizen of the state of New York. Client Services, Inc. is a Missouri based corporation that engages in the collection of debts owed by consumers.

Marlena says that after falling behind on her payments, Client Services was assigned to attempt to collect on the debt. They sent a letter to Marlena dated June 13, 2017.

However, through their interpretation or statement of the debt, the company used “false, deceptive, or misleading misrepresentation,” the lawsuit states.

Specifically, says the complaint, the letter failed to state important information such as the name of the creditor to whom the debt is owed to. As such, the lawsuit alleges “T[t]he least sophisticated consumer would likely be confused as to the name of the creditor to whom the debt is owed.”

Marlena demands a trial by jury.

Overview: Fair Debt Collection Laws

The Fair Debt Collection Practices Act (FDCPA) was passed in 1978. It is a set of debt collection laws set in place to help protect consumers against unfair debt collection practices, abuses, and harassment.

The federal law limits certain actions and behaviors by third party debt collectors, which is an agency that attempts to collector consumer debts on behalf of other parties or entities.

Strictly speaking, the FDCPA only helps protect consumers against actions taken by third party debt collectors and not through the actions taken place on behalf of a personal debt, such as through a local hardware store, for example.

Several regulations are set in place by the FDCPA that must be abided by third party debt collectors. These regulations include the times a debt collector can be in contact. Typical hours are set between 8:00 a.m. and 9:00 p.m.

A debt collector may also reach a debtor either at home or in the office, but at any point a debtor iterates that they would like to never be contacted again, a debt collector must abide by these wishes.

Updated New York debt collection rules and restrictions curtail the behavior and actions of debt collectors. Some of the restrictions and rules include: communicating with third parties about a debt; harassment; making threats; calling too often; sending confusing letters; collecting on old debts; making robocalls; calling at inconvenient times of the day; and adding collection charges or adding fees to a debt.

Debt collectors are prohibited through regulations set forth by the FDCPA from making any kind of harassing or threatening calls. A debtor may only be provided information about their debts and information regarding how that debt may be settled and paid.

The Fair Debt Collection Lawsuit is Case No. 2:18-cv-01666-JMA-AYS, in the U.S. District Court for the Eastern District of New York.

Join a Free New York Unfair Debt Collection Class Action Lawsuit Investigation

If you live in New York and a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

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DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.